Below is a detailed summary of the bureaucratic and legal hurdles an entrepreneur

must overcome in order to incorporate and register a new firm, along with their
associated time and set-up costs. It examines the procedures, time and cost involved in
launching a commercial or industrial firm with up to 50 employees and start-up capital of
10 times the economy's per-capita gross national income.
The information appearing on this page was collected as part of the Doing
Business subnational project in Indonesia. Download this Doing Business report or
explore other cities and topics.

Legal form: Limited Liability Company - Perseroan Terbatas (PT)

City: Batam
No.

Procedure

Time to
Complete

Associated Costs

Arrange for a notary; obtain the standard form of the company

deed; obtain clearance for the company name electronically
from the Ministry of Law and Human Rights
The uniqueness of the company name must be checked to ensure
that it has not been used by another Indonesian company, to avoid a
rejection by the Ministry of Law and Human Rights of the
company's deed of establishment and articles of association.
Because the process must be done through a computerized
processing system, the reservation and clearance must be done by a
public notary (the new computerized system for nontax state
revenue payments may be accessed only by a public notary). Upon
payment and verification, the applicant receives an online
notification (via email) with the cleared company name. The
reserved name will be blocked for 60 days.

Based on the Government Regulation Number 38 of 2009 (enacted

on May 28, 2009 and entered into force on June 3, 2009) regarding
the Non Tax State Revenue for the Ministry of Law and Human
Rights, the fee for this procedure is IDR 200,000.

4 days

IDR 200,000 (nam

reservation)

Notarize company documents before a notary public

1 day

IDR 3,800,000 (n

Once the notary gets the company name approval from the Ministry
of Law and Human Rights, the founders can sign the deed of
establishment. Standard articles of association are available at the
notary office.
The notary fees associated with this procedure cover the following
services: name check, deed drafting and approval, and payment of

No.

Procedure

Time to
Complete

Associated Costs

7 days

No cost

1 day

No cost

non tax state revenue (PNBP) fees. Commonly, local notary

associations set the scale of notary fees. In practice, the fee depends
on the agreement between notary and client.
The costs for accessing the Electronic Administration System of
Legal Status (SABH), name checking, and PNBP are counted
separately.
Obtain a certificate of company domicile from the Village
Office
The domicile letter is required as pre requisite for other procedures.
There is no official fee for this procedure but in practice, the
applicant usually pays IDR 300,000-IDR 600,000. The following
copies of documents should be attached:
1. Copy of the deed establishment;
2. Copy of the ID card of the director;
3. Pass photo size 3x4 2pcs;
4. A recommendation letter from the Head of neighborhood;
5. Map of business location;
6. The proof of the leasing the business premises.

3
4

As of January 2011, based on Mayor instructions, the Head of the

Subdistrict is prohibited to issue the Domicile Letter but in practice
this procedure is still required by the notaries.
Pay the State Treasury for the non-tax state revenue (PNBP)
fees for legal services at a bank
This payment is for name clearances and company approval.
Because the new computerized system for non-tax state revenue
payments (PNBP)which has been implemented by the Ministry
of Law and Human Rightsmay be accessed only by a notary
public, payment for registering or establishing a company is
normally done through a notary.
The requirement to pay the non-tax state revenue (PNBP) fee for
legal services in relation to the establishment of a small company
(Perseroan Terbatas- PT) is based on Government Regulation No.
38 of 2009 concerning types and tariffs on non-tax state revenues
replacing the previous regulation which is regulation No. 19 of

No.

Procedure

Time to
Complete

Associated Costs

2007.
Apply to the Ministry of Law and Human Rights for approval
of the deed of establishment
Based on Articles 9, 10, 29 and 30 of the Indonesian Company Law
No. 40/ 2007, the public notary preparing the company deed of
establishment must electronically file the required documents with
the Ministry of Law and Human Rights. The process will take place
as follows:
1. The application should be filled no later than 60 days since the
date of the deed;
2. In 30 days since the notice of no objection from the Ministry
of Law and Human Rights, the original application and supporting
documents should be submitted;
3. Seven days after the fulfillment of above requirements, the
Ministry of Law and Human Rights will issue the legalization of
the establishment of the company;
4. The company data (name, location, object and purpose, capital)
will be inserted in the Company Registry;
5. The Ministry of Law and Human Rights will announce the
establishment of the company in the Supplement State Gazette
(TBNRI) within 14 days of the Ministry's Approval Letter.
By virtue of Government Regulation 38/ 2009 (enacted on May 28,
2009 and entered into force on June 3, 2009) regarding the Non Tax
State Revenue for the Ministry of Law and Human Rights, a new
schedule of official fees was enforced for the establishment of a
domestic limited liability company (PT).

5
6

Delays depend on the workload of the Ministry and on the

approved courier service used by the Ministry to deliver its
approval to the notary. The process usually takes 7 days for
processing and approximately 7 days for courier service. There is
improvement in quality of courier service, by using Pos or TIKI
express services now the process to deliver the documents is faster
within 4-7 days.
Obtain a taxpayer registration number (NPWP) from the local
Tax Office

14 days

IDR 1,580,000 (ID

validation of com
entity + IDR 30,0
publication in the
BNRI + IDR 550,
publication in the
the State Gazette,

3 days

No cost

No.

Procedure

Time to
Complete

Associated Costs

3 days

IDR 500,000 (for

This procedure is required as a pre-requisite for SIUP. NPWP can

be applied for online at: www.pajak.go.id. But, in practice, most
applicants do not use the online system. Even if the service is
available online, the applicant still has to visit the Tax Office in
person to submit the original documents.
The following copies of documents should be attached:
1. Copy of deed of establishment;
2. Copy of ID card;
3. Copy of domicile letter from the Head of Village;
4. Receipt of payment of Land and Building Tax (PBB);
5. Proof of land ownership or the leases premises.
Time to complete this procedure is 2-7 days and there is no official
cost. In practice, the applicant usually pays IDR 50,000-200,000.
In Batam, based on the circular letter of the General Director of Tax
No. 37 of 2009, NPPKP is no longer needed.
Apply for the permanent business trading license (Surat Izin
Usaha Perdagangan, SIUP) and registration certificate (Tanda
Daftar Perusahaan-TDP) at the One Stop Shop
Based on Mayor Decree No. 8 of 2001 and the standard procedure
(SOP) in the integrated licensing services
(http://www.bpbatam.go.id/ini/ aboutBida/pemko2.jsp), the
requirements to obtain SIUP are:
1. Application form, including the phone number and the stamp of
the company;
2. Copy of deed establishment;
3. Original and copy of the company approval from the Ministry of
Law and Human Rights;
4. Copy of ID card;
5. Copy of NPWP PT;
6. Copy of the domicile letter from the Head of Village;
7. Proof of land ownership or lease of premises;
8. Map of business location;
9. The original balance sheet of the company;
10. Pass photo size 3x4 4 pcs.
7

The official time to complete this procedure is 3 days and it's

implement also in practice.

No.

Procedure

Time to
Complete

Associated Costs

3 days

No cost

7 days

No cost

Register with the Ministry of Manpower at the local Manpower

Office
According to Law No. 13/2003, companies with more than 10
workers or a monthly payroll of IDR 1 million must register with
the Ministry of Manpower. This procedure can be completed
concurrently with other post-registration procedures by filing the
compulsory report with the local office of the Ministry of
Manpower. The applicant gets a receipt of document submission.
The Manpower office conducts a verification process and issues an
official copy of the registration to the applicant. The applicant
returns to the office to pick up the official copy of the registration.
*

Although there is no official fee, an unofficial administrative fee

may be charged, which usually starts at IDR 150,000.
Apply for the Workers Social Security Program (Jamsostek
Program)
According to legal provisions on workers social security (Law No.
3/1992), it is mandatory for every company or individual
employing 10 workers or more or generating a monthly payroll of
at least IDR 1 million to apply for the Workers Social Security
Program (Jamsostek). This social security program covers
occupational accidents, death, old age, and health security. It is
arranged after the company starts to recruit workers.
Arranging for Jamsostek is the same for all Indonesian locations:
1. Fill-in the form, which can be downloaded from the website
jamsostek.go.id or obtained from Jamsostek Branch Offices;
2. Visit the Jamsostek Office to submit the filled-in form;
3. Jamsostek official conducts data input to Jamsostek data base;
4. The applicant receives the company membership certificate.
From submitting the application form until obtaining the
membership certificate it usually takes between 1 and 3 days. In
practice, if the company doesn't pick up the certificate, the local
Jamsostek Office will mail it to the applicant no later than 7 days
from the date of the application. In 30 days, the company should
pay the first insurance premium. Having received the first payment,
the Jamsostek Office will issue membership certificates for each

No.

Procedure

employee.
A company is not obliged to enroll its employees in the Jamsostek
social security program if it offers an independent social security
program to its employees, with comparable or better benefits than
those offered by the Package of Basic Health Maintenance Security
(according to Government Regulation No. 14/1993, as amended by
Government Regulation No. 28 /2002).
* Takes place simultaneously with another procedure.

Time to
Complete

Associated Costs